Analysts: Trump may boost the US economy through tariff reductions and a wave of tax refunds.

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Analyst predicts Trump could boost US economic growth above 3% by cutting tariffs and issuing tax refunds, using inflation as a catalyst to shift from protectionism to trade easing, though geopolitical shocks could disrupt forecasts.

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[Analyst: Trump May Boost US Economic Growth Through Tariff Cuts and Tax Refunds] According to Mars Finance, on January 2nd, Ed Yardeni, president of Yardeni Research, predicted that Trump will turn tariffs from barriers into leverage, using tariff cuts coupled with a wave of tax refunds to drive strong US economic growth of over 3%. Inflationary pressures will act as a catalyst, forcing the Trump administration to shift from protectionism to trade easing and utilize existing negotiating leverage to lower tariffs. With the strategic goal achieved, the White House is now in a position to alleviate inflationary pressures through tariff reductions, and Treasury Secretary Bessant has also hinted that the effectiveness of tariffs is waning. Furthermore, Yardeni warned that in the event of a major geopolitical shock (such as a deterioration in the European situation), all economic forecasts will become invalid. (Jinshi)

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